On Sept. 13 the Wall Street Journal announced that Venezuelan President Nicholas Maduro has officially cut off accepting dollars for oil as another OPEC nation has joined in to kill the long-standing Petrodollar agreement.
Confirming what President Maduro had warned following the recent US sanctions, The Wall Street Journal reports that Venezuela has officially stopped accepting US Dollars as payment for its crude oil exports.
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal.
Maduro hinted further that the South American country would look to using the yuan instead, among other currencies.
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said.
And today, as The Wall Street Journal reports, in an effort to circumvent U.S. sanctions,
Venezuela is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy said.
Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.
The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner.
The new payment policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., said Friday, “To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar.” – Zerohedge
Venezuela now joins with Iran and Syria for no longer accepting dollars in the sale of oil, and this list of OPEC countries ditching the reserve currency are only expected to increase as China prepares to soon create a new oil contract outside of the Petrodollar.
Source: The Daily Economist